Leeds United's 'lucrative' Red Bull deal praised as Kieran Maguire moots £10m boost

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Leeds United announced the major sponsorship deal earlier this summer.

Football finance expert Kieran Maguire believes Leeds United could be in line for a major financial boost after agreeing a ‘lucrative’ deal with Red Bull.

Leeds announced a ‘multi-year agreement’ with Red Bull at the end of May which will see the Austrian energy drinks company become minority shareholders and front-of-shirt sponsors, their first foray into English football. Supporters have raised concerns over Red Bull’s track record in altering club identities but those in charge at Elland Road insist no such changes will happen this time round.

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The agreement has been described as the biggest sponsorship deal in EFL history and Leeds look set to benefit both financially and commercially from the presence of Red Bull. The inner-workings of the partnership have been kept under wraps but Maguire, author of well-known book ‘The Price Of Football’ and Liverpool University football finance lecturer, expects a near eight-figure income boost.

“While some Leeds fans might be mildly miffed about the prospect of having any red on their shirts because of the rivalry with Man United, the vast majority are pragmatic,” Maguire told TBR Football. “They will know that if you’re going to be sponsored by a company called Red Bull, having the red sponsor is part of the overall deal.

“It is going to be very lucrative and it will help catapult Leeds’ profile as an international brand. That is going to bring a lot of money into the club, so I’m sure they will see that the benefits outweigh the cultural costs. The arrangement will be very much tiered and linked to the success of the club on the pitch.

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“In the Championship, it’s a good deal if you’re getting anything over £1million. This deal is likely to be worth seven or eight times that as a minimum. If Leeds can get to the Premier League and perform well, we could be getting closer to £10m. The club has a large fanbase and the nature of Red Bull, who spend a lot of money on marketing, is that they want to be associated with vibrant and progressive brands.“

The investment of Red Bull undoubtedly put Leeds in a stronger position going into the summer transfer window, with Paraag Marathe insisting the cash injection ‘could be the difference between saving a player from being sold or signing a player’. Pressing financial demands did encourage the £40m sale of Archie Gray to Tottenham Hotspur earlier this month but the YEP understands the club are no longer actively looking to sell anyone and will only entertain offers on their own terms.

Reports earlier this summer suggested Leeds needed to raise £100m through player sales with the likes of Crysencio Summerville, Wilfried Gnonto and Georginio Rutter all tipped to leave at points. But they were wide of the mark and those in charge at Elland Road now hope to keep the aforementioned players as there is no need to cash in on anyone, although offers will be considered if they are deemed appropriate and the player wants to leave.

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